Friday, November 24, 2017

Covering Water Damage

Stay protected during floods by getting appropriate insurance against flood damage

By Anagh Pal

This year India has received more than its share of rainfall. But, it has also meant that rural India and even some cities have been flooded or waterlogged. Only recently heavy rains brought Mumbai to a standstill and the 2015 flood that badly affected Chennai is still fresh in our memory.

The good news is that the risk of damage to your home and its contents from flood can be protected through insurance.

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“Flood protection is available on both types of policies - basic and comprehensive. A basic policy (standard fire and allied perils - SFSP Policy ) covers you against fire, earthquake, terrorism, flood and so on and under a comprehensive policy one can avail covers from the basic plan plus burglary, breakdown of home appliances, and personal accident as well,” says Parag Gupta, Chief Underwriting Officer, Bharti AXA General Insurance.

Any of the above eventualities may leave you financially crippled. Adequate insurance can prevent that.

“One should keep in mind that the building and contents are insured for adequate sum insured on a reinstatement basis,” adds Gupta. This in common terms means the cost required to repair/replace/rebuild the damaged assets and bringing them to the condition as they was before the loss. The right value for structure would be the cost of reconstruction of the whole property. For content, the reinstatement value would include the cost of replacement and installation.

However, remember there will be some amount of deductibles that need to be paid from your own pocket, which would be decided at the time of taking the policy.

In the event of making a claim it is important to properly document the damages and take photographs and videos of the same. Damaged items need to be preserved for inspection. The insurance company would also ask for relevant receipts and documents.

As we see, home insurance policies offer protection not just against flooding but also other natural calamities. Plus, you can also get cover for added risks under a comprehensive policy. Even if you are not on the ground floor, you may be subject to some of these risks, so it makes sense to be insured. Choose the insurance policy based on your needs to stay protected.

 

 

anagh@outlookindia.com

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